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Raghavendra Kuridoddi & Dennis Hoyle

This document compares Google and Yahoo from 2005-2009 based on financial metrics. It finds that Google consistently outperforms Yahoo across key metrics like revenues, earnings per share, profit margins, and cash flows. Specifically, Google's earnings per share and profit margins have remained higher than Yahoo's over this period. The document recommends investing in Google but not Yahoo due to Google's stronger financial performance and positive cash flows compared to Yahoo's low earnings and proportion of current assets.

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92 views20 pages

Raghavendra Kuridoddi & Dennis Hoyle

This document compares Google and Yahoo from 2005-2009 based on financial metrics. It finds that Google consistently outperforms Yahoo across key metrics like revenues, earnings per share, profit margins, and cash flows. Specifically, Google's earnings per share and profit margins have remained higher than Yahoo's over this period. The document recommends investing in Google but not Yahoo due to Google's stronger financial performance and positive cash flows compared to Yahoo's low earnings and proportion of current assets.

Uploaded by

raghuj4u
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
Download as pptx, pdf, or txt
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Raghavendra Kuridoddi & Dennis Hoyle

• Industry: Internet services

• Competitors: Microsoft, AOL-Time Warner,


Social networking sites like Facebook, Twitter,
MySpace, Apple, Wireless companies
• Google Inc. (GOOG), and Yahoo! Inc. (YHOO)

• Invention and Innovation

• Interesting industry: Directly connected to


consumers, Brand
SWOT Analysis
SWOT Analysis
Common Balance
Trends in Current Assets
100.0%
90.0%
80.0%
70.0%
60.0% Company 2009 2008 2007 2006 2005
50.0% Google 72.0% 63.5% 68.2% 70.6% 87.6%
Yahoo 30.8% 34.7% 26.5% 32.6% 31.8%
40.0%
30.0%
20.0%
10.0%
0.0%
2009 2008 2007 2006 2005

Google Yahoo
Revenues
Revenues Since 2005
$25,000,000,000

$20,000,000,000

$15,000,000,000

$10,000,000,000

$5,000,000,000

$-
2009 2008 2007 2006 2005

Google Yahoo
EPS
Earnings Per Share Since 2005
$25.00

$20.00

EPS 2009 2008 2007 2006 2005 E


Google $ 20.62 $ 13.46 $ 13.53 $ 10.21 $ 5.31 P $15.00
S
Yahoo $ 0.43 $ 0.31 $ 0.49 $ 0.54 $ 1.35
$10.00

$5.00

$-
2009 2008 2007 2006 2005

Google Yahoo
Liquidity
Liquidity
14.00

12.00

10.00
Current Ratio 2009 2008 2007 2006 2005
8.00 Google 10.62 8.77 8.49 10.00 12.08
Current Yahoo 2.67 2.78 1.41 2.54 2.86
Ratio 6.00

4.00

2.00

0.00
2009 2008 2007 2006 2005

Google Yahoo
Net Income
Net Income
$7,000,000,000

$6,000,000,000

$5,000,000,000

$4,000,000,000

$3,000,000,000

$2,000,000,000

$1,000,000,000

$-
2009 2008 2007 2006 2005

Google Yahoo

Net Income 2009 2008 2007 2006 2005


Google $ 6,520,448,000 $ 4,226,858,000 $ 4,203,720,000 $ 3,077,446,000 $ 1,465,397,000
Yahoo $ 597,992,000 $ 424,298,000 $ 660,000,000 $ 751,391,000 $ 1,896,230,000
Profitability
Profit Margin 2009 2008 2007 2006 2005
Google 35.1% 30.4% 30.6% 33.5% 32.9%
Yahoo 8.9% 1.3% 12.2% 17.1% 48.4%

Profitability
60.0%

50.0%

40.0%

Profit 30.0%
Margin

20.0%

10.0%

0.0%
2009 2008 2007 2006 2005

Google Yahoo
Invest in Google
• Earnings per share: Google more lucrative

• Profit margin: Consistent

• Positive cash flows


Don’t invest in Yahoo
• 2008 performance

• Low proportion of current assets to total assets

• EPS: Very low


Citations

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